The Supreme Court clarified the pensionary benefits for women Short Service Commissioned Officers (SSCOs), focusing on recalculating pensions based on notional increments between their release and the deemed completion of 20 years of service. The Court addressed misinterpretations regarding the last drawn salary and established that arrears of pension, rather than salary, are payable from when the officers are considered to have completed 20 years of service. Additional clarifications were provided on the computation of the commuted value of the pension, leave encashment, and the entitlement to Ex-Servicemen Contributory Health Scheme (ECHS) benefits.

1. Background:
   • The case arises from the Supreme Court's judgment in Wg Cdr A U Tayyaba (retd) & Ors v Union of India & Ors on November 16, 2022, which directed the Union of India to grant pensionary benefits to women SSCOs as if they had completed the minimum 20 years of service required for pension eligibility.
2. Issue:
   • The central issue was the correct interpretation of the directions regarding pension calculation. The Union Government issued Pension Payment Orders (PPOs) based on the last drawn salary at the time of the officers’ release, ignoring increments between their release after 14 years of service and the deemed completion of 20 years.
3. Key Directives:
   • The Supreme Court clarified that pensions should be computed as if the officers had completed 20 years of service, with notional increments factored in for the years between their release and the deemed completion of service. The pension must be based on the salary that would have been drawn after 20 years of service. Arrears of pension are payable, but no arrears of salary.
4. Additional Clarifications:
   • The Court provided further guidance on:
     • Commuted Pension: To be calculated as on the deemed date of completion of 20 years of service.
     • Leave Encashment: Any officer with unencashed leave up to the maximum of 300 days should be compensated for the difference.
     • ECHS Benefits: Officers are entitled to ECHS benefits as retired personnel.
5. Final Order:
   • The Supreme Court set a deadline for implementing its directives, requiring all arrears and revisions to be settled by June 15, 2024.

Acts and Sections Discussed:

• Armed Forces Regulations: Concerning the pension and service benefits of Short Service Commissioned Officers (SSCOs).
• Pension Payment Orders (PPOs): Legal documentation for the disbursement of pensions to retired military personnel.

Ratio Decidendi:

The case rests on the principle that once the SSCOs are deemed to have completed 20 years of service, they must be treated as such for all pension-related purposes, including the application of notional increments. The Court emphasized that while arrears of salary are not payable, arrears of pension must reflect the corrected salary structure up to the 20-year service mark.

Subjects:

Pension benefits for women Short Service Commissioned Officers

Armed Forces, Pension Benefits, Women Officers, Service Law